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To: Bobby Yellin who wrote (38837)	8/12/1999 6:10:00 PM
From: goldsnow	Respond to of 116766

Stupid corporations vs Stupid Taxes Coral finds offshore haven Place your bets: any odds on the next bookmaker to go abroad? Bookmaker Coral is the latest firm preparing to set up abroad as the migration of telephone betting businesses to offshore tax havens continues to gather strength. Chairman of the British Betting Offices Association Warwick Bartlett: "This is the future" The revelation that one of the big three bookies is now in the process of assessing the merits of Gibraltar, the Isle of Man and Alderney, among other possible locations, is causing concern in the racing industry and at the Treasury. With telephone betting worth about £600m a year, about £40m makes its way into Treasury coffers in betting duty and about another £4m to racing through the levy. Bookies say they cannot afford to stay in Britain Most of that could now be lost, and there could be an immense knock-on effect on jobs in the industry. On the other hand, millions of punters could benefit from lower tax deductions on offer from new overseas operations. The first to make the move abroad was the Victor Chandler Organisation, whose decision to set up in Gibraltar kick-started a trend which saw Abingdon-based Stan James follow suit. New horizons On setting up overseas, Chandler immediately offered a reduced deduction of 3%, as opposed to the 9% paid in Britain. This had an immediate effect as punters in their droves opened accounts with the new set-up and deserted British bookmakers. The betting industry has been going through a boom period, with wagers on football, rugby, golf and almost anything that moves in sport as well as the horses and dogs. Bookmakers responded to that by improving their call centres, installing millions of pounds' worth of new equipment and taking on extra staff. Barking mad But the success of Chandler's move meant an immediate rethink by the major firms was necessary to stem the erosion of their market share. Bob Scott, chief executive of Barking-based Coral said: "We're losing business and it's commercial nonsense to be put in a position where someone else can offer such a vastly improved package. "People who consistently bet with us aren't betting with us any more." Mr Scott expects to complete the move before Christmas and hopes to offer a better rate of deduction than his rivals. Coral's main rivals William Hill and Ladbrokes are expected to follow suit, offering punters a potential overseas gold mine. news.bbc.co.uk